Chris asked:
I am 25 and have been working for a few years. Can anyone recommend any books and/or strategies to help me learn more about how to manage my personal finances? I know the basic about 401k and my Roth IRA. Can you help me prioritize and also suggest some other investment opportunities I should consider beyond my 401k and Roth IRA? Thx!
I am 25 and have been working for a few years. Can anyone recommend any books and/or strategies to help me learn more about how to manage my personal finances? I know the basic about 401k and my Roth IRA. Can you help me prioritize and also suggest some other investment opportunities I should consider beyond my 401k and Roth IRA? Thx!
here’s a strategy that actually works.
go visit your public library in person. find the call number of any book on personal finance by anyone. go to the stacks and find that book. ignore it, but look through the stacks in that area. pick out any book that looks interesting and check to see if you can understand it.
after you’ve read about three intro books, see if the others make more sense. then branch out into whatever parts of the whole subject interest you.
…
Go to your library.
There are many books on personal finance.
One thing that changed my world was a program called Microsoft Money.
You can also download AceMoney which is free on the internet.
It’s a check register program that lets you manage your checking account.
It gives you pie charts of where your money is going and helps you budget.
At the very least – keep a check register in excell.
Google exell check register its free from the exell people.
Always max out your 401K first. Then move to a ROTH.
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Hi,
I would say the most basic book you could read on money management and where to start is ‘The Wealthy Barber’ by Michael Chilton. It reads like a story and is therefore easy to follow.
Next, I’d agree with the source below and recommend Robert Kyiosaki’s book, ‘Rich Dad Poor Dad.’
It is a great book that teaches you how to think differently about money than the average Joe. It will teach you how the wealthy think.
My personal advice, from all of these and other books, is:
Invest a minimum of 10% of gross, but aim for 25% for long term savings.
Invest 10% of gross for short term savings like down payment, car, trip, etc.
Invest 10% of gross to an emergency fund
Spend no more than 25% on debts of all kind, including your mortgage.
Spend no more than 20% on entertainment and clothing, etc. (if you want more, earn more)
Give 10% to charity or church
Also, it is important to plan a good budget and maintain it with discipline.
There is a good source for free personal budgets tools in various blogs and sites. We have one as well.